Beacon Financial Corporation · NYSE:BBT
Beacon Financial — Berkshire Hills Bancorp — Merger or Acquisition (May 2015)
12 slides from Beacon Financial's merger presentation, May 22, 2015
Slide 1: Berkshire Announces Acquisition of Firestone Financial
BERKSHIRE HitLSBANCORP Berkshire Bank - America’s Most Exciting Banke Berkshire Announces Acquisition of Firestone Financial May 22, 2015 Life is exciting. Let us help.
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the proposed merger of Berkshire and Firestone. These statements include statements regarding the anticipated closing date of the tran
Slide 3: Additional Information and Where to Find It
3 ADDITIONAL INFORMATION AND WHERE TO FIND IT In connection with the proposed merger, Berkshire Hills will file with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 that will include a Proxy Statement of Firestone and a Prospectus of Berkshire Hills, as well as ot
Slide 4: Firestone Financial Corp. Overview
Firestone Financial Corp. Overview Long-standing commercial specialty finance company providing secured installment loan equipment financing for small and medium-sized businesses .Founded: 1965 .Headquarters: Needham, MA .Assets: $192 million .Target Lending Industries: Small businesses who own and
Slide 5: Merger Benefits
Merger Benefits •Accretive to TE/TA •Minimal TBV dilution ($0.08) with 2.5 year earn back •Accretive to EPS in 2016 •Accretive to ROE, ROA and NIM •Expected to generate ROE in excess of 15% Financial •Broadens asset and revenue mix while improving margins •High barriers to competitive entry in this
Slide 6: Merger Summary
Merger Summary Merger Partner Firestone Financial Corp. Transaction Structure Firestone to operate as wholly owned subsidiary of Berkshire Bank Consideration 130% of Firestone’s tangible book value at close Aggregate Deal Value Approximately $53 million Consideration Mix 75% stock; 25% cash Required
Slide 7: Transaction Assumptions
Transaction Assumptions 7 Key Assumptions Consideration Approximately 1.42 million shares issued and $13.2 million in cash 1x after tax deal charges $3 million Loan credit mark $6.3 million; 3.3% of loans (50% accretable, 50% non-accretable) Additional Firestone operating assumptions Lower funding c
Slide 8: Appendix
| Appendix is exc: Let us help.
Slide 9: Loan Composition
Loan Composition Source: Company financials 9 Geographic • Transactions are located in all 50 states • 21% of total value located in Florida and California • Top 9 states comprise 55% of all transactions Collateral •Seven distinct collateral types •Amusement, Carnival & Park, and Fitness comprise 83
Slide 10: Firestone Financial Highlights
Firestone Financial Highlights (in $ millions) 2011 2012 2013 2014 Balance Sheet (FYE) Notes Receivable 128.3 149.8 178.1 176.7 Loan Loss Allowance (2.8) (3.0) (3.6) (3.1) Total Assets 127.7 148.5 176.8 176.4 Senior Debt 90.7 110.6 133.4 127.7 Subordinated Debt 7.5 7.5 7.5 11.2 Equity 25.5 27.3 29.2
Slide 11: Firestone Management
Firestone Management Firestone’s long-standing senior leadership team has extensive experience in the markets they serve, and is expected to continue to run the business following the closing. . Management team has extensive commercial finance and banking experience, averaging 25 years, including tw
Slide 12: Contact: Investor Relations
Life is exciting. Let us help. If you have any questions, please contact: Allison O’Rourke 99 North Street Pittsfield, MA 01202 Investor Relations Officer (413) 236-3149 aorourke@berkshirebank.com
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